Number of Bitcoins on Exchanges is Falling Together With Price
Despite Bitcoin's low presence on exchanges, big investors continue their active trading, hinting at sustained interest in the cryptocurrency.
Bitcoin has a low amount on exchanges, suggesting BTC owners don't trust these platforms as much.
Santiment, a crypto data company, says that the amount of bitcoin (BTC) on exchanges is the lowest in six years.
Records show that only 5.8% of all BTC is on trading websites. The last time this was the case was on December 17, 2017.
BTC Amount on Exchanges Drops Further Fewer bitcoins on exchanges mean many people are not trusting these online sites. Instead, they keep their BTC in personal storage or handle it themselves.
This choice became popular after FTX, a big crypto exchange, failed last year. When it went bankrupt, it hurt many other companies and left many people unsure about their digital money. After that, even more BTC left big exchanges like Binance.
People started to handle their own BTC more in early 2022. Bad events made even more BTC leave exchanges. From late 2022 to early 2023, only 7% of BTC was on exchanges. In May, it was 6%. Now, it's 5.8%. This suggests people are worried about which exchange will fail next.
Big Bitcoin Buyers Remain Active Even though there's less BTC on exchanges, big BTC transactions are still happening. Santiment says there are about 57,400 big BTC transactions every week, even when BTC's price dropped recently.
Another report agrees, saying big BTC owners bought more than 11,600 BTC (about $308 million) in one week. Right now, about 156,660 accounts have between 10 and 10,000 BTC.
After BlackRock, a huge money manager, tried to start a BTC fund in June, more big financial companies wanted to do the same.
